I am able to build from the same docker file and image on another host.

“docker info” produced similar information on both machines.

How can I debug this further to see what the issue is?

Update (in response to the comments below):

I have been able to build the same image (and others) on this instance before

The issue occurred irrespective of the base image used

The issue was specific to this one instance which is running CentOS

The user I was logged in as was different from the user the daemon was running as (root)

Assuming the issue may have been because of the user mismatch, I changed to root and tried the command. It went through without issues. Then, I changed back to the original user, removed the image and tried again: it went through again! The original issue is not reproducible anymore.